Meta Plans $95 Billion Equity Raise to Fund AI Expansion, Its Largest Ever

Meta Platforms said on Monday, October 26, 2026, that it plans to raise up to $95 billion in equity, its largest ever equity fundraising, to fund its costly AI related expansion of data centers, cloud computing power and other infrastructure. The company launched public offerings of about $35 billion in common stock and convertible preferred stock on the same day.

How the $95 billion is split

The remaining part of the plan is a separate at-the-market share sale program of up to $60 billion. Meta said that program would come after its new non-voting Class C shares begin trading, expected in the first quarter of 2027, and said the timing and terms of that program are not yet finalized.

The launched $35 billion portion breaks down into about $22.5 billion of Class A common stock through forward sale agreements with Morgan Stanley and Goldman Sachs, settling on or before November 19, 2027, and about $12.5 billion of mandatory convertible preferred stock. The preferred stock is structured as 250 million depositary shares, planned to list on Nasdaq as METAM, converting around August 15, 2029. Those breakdown figures come from Skimwire reporting on the filing.

Nvidia, Advanced Micro Devices and Broadcom have expressed interest in purchasing up to $5 billion in total of Meta Class A common stock in the offering. The three chipmakers supply hardware that sits at the center of the AI buildout Meta is funding.

Why Meta needs the money

Meta has committed to spend about $825 billion in the future, primarily driven by investments in data centers, AI related infrastructure and cloud computing power. Against those commitments, the company held cash, cash equivalents and marketable securities of $82.45 billion and long-term debt of $80.92 billion as of September 30, 2026.

The strain showed in the third quarter. Meta reported a $2.12 billion cash burn in the quarter, its first negative free cash flow in over ten years, compared with positive cash flow of $10.63 billion a year ago. Last week Meta raised the lower end of its annual capital expenditure forecast to between $135 billion and $145 billion, from an earlier outlook of between $130 billion and $145 billion.

Earnings still grew

The raise comes alongside revenue that still beat expectations. Meta reported third quarter revenue of $64.60 billion, ahead of Wall Street estimates of $63.37 billion, and projected fourth quarter revenue between $73 billion and $76 billion. The picture is a company whose core business is still growing while the cost of building AI capacity rises faster than the cash it generates.

Analysts said Meta is not alone in turning to equity markets for AI funding. Ben Wood, a senior partner at CCS Insight, told CNBC: "Meta offering more stock comes at a time when numerous companies, such as Google, SpaceX and soon, Anthropic, are going to the markets to raise funds." Reuters gave a scale comparison from earlier this year, when Alphabet increased the size of its equity offerings to $84.75 billion. Meta's $95 billion plan is larger than that figure, which underlines how fast the cost of AI infrastructure has climbed.